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Planning applications for 33,700 rental apartments – a record high

Last year, a slight drop in the number of planning applications and building permits seemed to indicate that, even for rental apartment construction, the sky is certainly not the limit. The planning applications submitted in the first quarter of 2018, however, show that investors have not yet turned their backs on residential investment properties. The number of rental apartment projects planned over the last 12 months has once again reached 2,000 residential units above the year-on-year level. Over the past 12 months, planning applications were submitted for around 33,700 rental apartments – a new record. Continued strong construction activity, combined with more subdued demand, is placing increasing pressure on landlords in many regions outside of the urban centers. Rental price concessions are becoming more and more necessary to avoid longer-term vacancies. The asking rent indices continued to show negative annual growth rates between -0.3% (Homegate) and -2.0% (Wüest Partner) during the first quarter of 2018.

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